Kingfisher's underlying sales edge lower in soft home improvement market

* First-quarter like-for-like sales down 0.7%

* In UK, Screwfix like-for-like ​sales up ⁠4.1%, B&Q down 4.1%

* France like-for-like sales down 2.1%

* Maintains ​full-year profit guidance (Adds shares in paragraph 3, analyst comment in paragraph 4, CEO comment in paragraph 12)

LONDON, ‌May 26 (Reuters) - European home improvement retailer Kingfisher reported a 0.7% decline in first-quarter underlying sales on Tuesday, citing a ⁠soft market backdrop, but maintained its full-year profit guidance.

The ⁠FTSE 100-listed group, which owns B&Q ​and Screwfix in the UK and Castorama and Brico Depot in France and other markets, said core categories proved resilient despite a late start to spring impacting footfall and seasonal demand. Total sales rose 0.8%.

Shares ​in Kingfisher ‌were up 4.5% in early trading, paring losses over the last three months to 16.3%.

UPDATE REASSURING, SAY ANALYSTS

Analysts at RBC Europe said the update was reassuring given a later start to spring this year. They noted that Kingfisher's direct exposure to the Middle East is very low.

In ​the UK, Screwfix's like-for-like sales rose 4.1% in the first quarter to April 30 and it ‌won market share. But B&Q's sales on the same basis fell 4.1%, reflecting its higher exposure to seasonal items such as garden furniture ‌and plants, and a tough comparative number with last year.

Official data, published last week, showed British retail sales fell by the most in nearly a year in April as fuel sales plummeted, adding ​to signs of waning consumer spending against the backdrop of the Iran war and rising energy costs.

In France, Kingfisher's ‌like-for-like sales fell 2.1% in the first quarter. They were down 0.2% in Poland.

PROFIT GUIDANCE MAINTAINED

The group said it was sticking with its full-year forecast for adjusted pretax profit in a range ⁠of £565 million ⁠to £625 million ($761 million-$842 million) versus the £560 million made in 2025/26.

Prior to the ‌update, analysts were on average forecasting £589 million.

"We delivered a resilient start to the year, executing well and gaining market ​share against a soft ​market backdrop," CEO Thierry Garnier said, highlighting double-digit growth in e-commerce and ‌trade sales.

Earlier this month Garnier resigned after nearly seven years as CEO to become the boss of Netherlands-headquartered supermarket group Ahold Delhaize. He does, however, have a 12-month notice period.

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